Ebay sued in California over PayPal unit

JaredA. Favole

EBay Inc.
EBAY, +1.95%
said Wednesday that it faces a purported antitrust lawsuit in California over its PayPal unit, alleging that the company improperly monopolized the forms of payment sellers can use on its popular online auction Web site.

EBay, of San Jose, Calif., said the plaintiff filed the suit this month and seeks treble damages and an injunction. EBay believes it has "meritorious defenses" and intends to defend itself "vigorously," according to a filing with the Securities and Exchange Commission.

The company has come under criticism for PayPal, an online payment service that eBay owns. Last September, PayPal signed an agreement with 28 state attorneys general involving accusations of misleading business practices. It also reached a preliminary settlement agreement with a proposed class of PayPal customers.

PayPal has faced competition recently from search giant Google Inc. (GOOG), which rolled out a rival online payment service in June. Ebay said at the time that it wouldn't allow its customers to use Google's Checkout on the eBay site.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.